Creative Artists Agency is enacting pay cuts across the entire company as the coronavirus pandemic continues to wreak havoc across Hollywood and the global economy, Variety has learned.
The last domino to fall among the major agencies, the cuts are on a progressive basis affecting the highest paid, a spokesperson said. Agency leaders Richard Lovett, Bryan Lourd and Kevin Huvane will forgo compensation entirely, for the time being.
“In this time of tremendous uncertainty for individuals, businesses, governments and communities, it is incumbent upon us to look closely at what measures help ensure CAA always remains the strongest company for our employees and clients. Making cost reduction decisions is always a thoughtful and deliberate process for us, never more so than under these extraordinary circumstances,” a CAA spokesperson said in a statement.
“We are implementing, among other actions, a reduction in pay among employees across all levels of the agency, with our highest compensated colleagues shouldering a greater responsibility. We deeply appreciate not only the understanding that employees across the company have demonstrated since this unprecedented global crisis began, but also the remarkable support and compassion colleagues have shown one another, clients, and many in the community in need,” the statement concluded.
While assistant-level employees will see a reduction in paid hours, recent pay increases for assistants will stay in effect. Raises were installed in the weeks following the #PayUpHollywood movement, which demanded better compensation and working conditions for support staff across the industry.
Every major Hollywood talent shop has cut costs, given that production has come to a halt, movie releases have been delayed and development has slowed — meaning clients aren’t being paid, and commission checks aren’t flooding mailrooms.
Endeavor, which owns WME, has cut about 250 jobs amid the public health crisis and their own $4.6 billion debt burden. UTA also reduced salaries across the board. ICM cut floating assistants, and Paradigm laid off over 100 staffers, including high-level agents, to explosive consequences.
Deadline first reported the cuts.